« previous next »

Author Question: If an individual's labor supply curve is backward bending, then A) the income effect associated ... (Read 88 times)

jerry coleman

  • Hero Member
  • *****
  • Posts: 570
on: Jul 1, 2018
If an individual's labor supply curve is backward bending, then
 
  A) the income effect associated with a higher wage is greater than the substitution effect.
  B) the substitution effect associated with a higher wage is greater than the income effect.
  C) the substitution effect associated with a higher wage encourages more leisure.
  D) A and C
  E) B and C

Question 2

What characteristic of monopolistic competition may help to offset the inefficiency of this market structure?
 
  A) Free entry and exit imply that firms produce at minimum long-run average cost.
  B) Consumers may value the product diversity that allows them to choose from a wide variety of differentiated products.
  C) Consumers may feel better about the inefficiency if they know that firms earn zero profits.
  D) Consumers may prefer this outcome to monopoly or monopsony.


Brenm

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Your heart beats over 36 million times a year.

Jaundice. Photograph of an individual with liver disease, evidenced by the yellowing of the sclera o Jaundice. Photograph of an individual with liver disease, evidenced by the yellowing of the sclera o
Effect of BPG on oxygen binding to hemoglobin. The BPG concentration Effect of BPG on oxygen binding to hemoglobin. The BPG concentration
Although average brain size increases gradually though time in H. erectus, individuals with small br Although average brain size increases gradually though time in H. erectus, individuals with small br
Medications That May Cause Myopathy as an Adverse Effect Medications That May Cause Myopathy as an Adverse Effect
A factory replacement unit for a CSFI unit that has individual injectors at the ends that go into ... A factory replacement unit for a CSFI unit that has individual injectors at the ends that go into ...
First-Pass Effect First-Pass Effect
Video: Neural regulation of mechanical digestion- CNS voluntary, ANS & ENS controlled involuntary movements

For a complete list of videos, visit our video library